Early and Late Markets Framework
Assessing market receptivity
The Early and Late Markets Framework describes how to assess market receptivity to new products in emerging industries. The framework highlights the importance of understanding the nature of the benefit, state of the art required, cost of product failure, and introduction or switching costs.
- Market receptivity is a critical factor in the success of emerging industries.
- The nature of the benefit, state of the art required, cost of product failure, and introduction or switching costs are key factors in assessing market receptivity.
- Firms should focus on early markets that are most receptive to new products.
- Assess Nature of BenefitAssess the nature of the benefit offered by the new product, including performance advantage and cost advantage.Pro tipThe nature of the benefit is a critical factor in assessing market receptivity.WarningIgnoring the nature of the benefit can lead to ineffective marketing efforts.
- Evaluate State of the Art RequiredEvaluate the state of the art required to yield significant benefits from the new product.Pro tipThe state of the art required can vary significantly across buyers.WarningIgnoring the state of the art required can lead to ineffective product development.
Minicomputers
Scientists in laboratories were early adopters of minicomputers, demonstrating high market receptivity.
OutcomeThe early adoption of minicomputers led to significant growth in the industry.
Ignoring Nature of Benefit
Ignoring the nature of the benefit can lead to ineffective marketing efforts.
Inadequate State of the Art
Ignoring the state of the art required can lead to ineffective product development.
The framework is based on the concept of market receptivity, which refers to the willingness of buyers to adopt new products. The framework provides a structured approach to assessing market receptivity in emerging industries.
Source · BOOK
Competitive Strategy